FNG, known from Brantano and Miss Etam, is taking over the Swedish Ellos Group, a leading e-commerce player in fashion and interior decoration. A sum of 229 million euros is involved.
First time outside of the Benelux
With the acquisition of the Ellos Group , Belgian fashion group FNG is making its first steps outside of the Benelux. It includes the chains Brantano, Fred & Ginger, CKS and Claudia Sträter. Ellos Group is a huge e-commerce company in fashion and interior decoration in Scandinavia that houses such brands as Ellos, Jotex, Stayhard and Homerun. Last year, the Swedish company generated a turnover of 243 million euros.
"Ellos Group is market leader in Scandinavia and offers a very attractive blend of fashion, interior and decoration items, strongly positioning its own brands. Combined with its powerful platform for financial services, this is an ideal asset for FNG," says Dieter Penninckx, founder and CEO of FNG.
Nordic Capital gets hold of FNG stock
Through the acquisition, FNG wants to expand its range of products and gain access to the Scandinavian market but that's not all. The company also wants to reinforce its e-commerce activities. FNG is counting on important synergies, both in the field of turnover growth and in terms of cost optimisation. In the mid- to long term, those synergies should contribute at least 25 million euros per year to the EBITDA.
The takeover costs 229 million euros, which is well in excess of the company's own stock market value of 180 million. About half of it (124 million) will be paid in cash by FNG and the rest will be handled through shares (90 million) and an interest-free loan of 14 million euros. It also means that Ellos' owner Nordic Capital will become an important minority shareholder of FNG, with 10 to 15% of the stock.